4 tips for building a successful portfolio

 4 tips for building a successful portfolio

The financial maze of stocks, bonds, and mutual funds can be difficult. American Century Investments offers the following tips to provide you with the knowledge you need to build a profitable portfolio.

* Know your goals. Think about how much money you will need for your children's education or retirement. Regardless of your future vision, set your goals, and develop a concrete plan to achieve them.

* Define your investment time horizon. If you don't plan on retiring anytime soon, you may want a portfolio with more long-term investments. If retirement is fast approaching, consider a more conservative approach.

* Determine your risk tolerance. Calculate your level of comfort about the risk and compare it to what you can afford. In general, the more time you have to invest, the more risk you can take.

* Contact a professional. To avoid financial problems later, it is often advisable to seek professional advice when building a portfolio.

"Recent research shows that investors continue to grapple with some of the most basic investment concepts, suggesting a greater need for financial advice and guidance," said Doug Lockwood, Certified Financial Planner.

To help investors meet their financial goals, American Century Investments developed On Plan Investing, a program that allows investors to build and maintain diversified investment portfolios at no additional cost.

By combining educational tools, advice, market knowledge, and investment products, On Plan Investing helps investors develop a personal investment strategy, regardless of whether they are new to the investment and seek advice. They want to keep controlling their investment mix, need help to position their futures - Prospecting portfolios, or need help understanding how markets work.